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Real estate investment trusts and related exchange traded funds have become overpriced as investors flocked to yield-generating assets in a low rate environment. However, after the recent selling pressure, the asset class may be more attractively valued.

“Over the course of 2015, Morningstar’s real estate sector coverage has moved from one we viewed as largely overvalued to one that looks more reasonably priced,” writes Todd Lukasik, senior equity analyst for Morningstar. “The sector trades at a 10% or so aggregate discount to our estimates of value, roughly in line with the discount associated with our overall coverage universe.”